The objective is to grow its net assets by selecting stocks that are listed primarily on the international equity markets, and to outperform the MSCI World index, over the recommended investment period.
Global Value benefited from a positive environment for Value funds, thanks to the Federal Reserve's statement confirming its strategy to gradually reduce its balance sheet. There was also a higher yield on the US 10-year T-Note supported by expectations of growth and inflation, a possible US tax reform, and the 9% rebound in oil prices. Our exposure to the cyclical, and, in particular, financial sectors contributed to an outperformance over the period. But, above all, it was energy stocks that posted the strongest rebounds: +20% for oil producers and +30% for service companies (their stocks posting falls of around 20% since the beginning of the year, while oil prices fell back to their January levels). The continued pick-up in European growth prospects and sustained improvement in fundamentals contributed to the robust performance posted by Renault and Accor. In Canada, Bombardier (the railroad and aerospace manufacturer) was penalised by the US Department of Commerce's announcement it would launch proceedings to impose tariffs on C-Series jet sales to US airlines. A final decision is expected in 2018 and Boeing will have to justify its claim of being penalised by these contracts an assertion some experts consider difficult. We have begun to reduce exposure to JP Morgan as its discount is gradually shrinking, as well as to Brighthouse Financial, the personal life assurance business spun off by Metlife which is refocusing on its savings, corporate insurance and asset management businesses.
Share class (K-GBP)
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.